China earns $500 billion in Profit amid Trade War with US, China’s economy skyrocketed

Recently published reports and some analysis have shown that even in this tariff war going on between China and the US, China has gained profit of billions of dollars due to which Trump’s trade war against China is not showing any significant effect and China has also refused to accept every condition of Trump. The Chinese government is benefiting the most from the tariff war going on between China and the US because it has been said that the Chinese government is now generating more tariff revenue than the US government, in which China is still selling all its exports to the US through Japan, South Korea and other allies. However, the major beneficiaries of the tariff war are the US and Chinese governments and not the US and Chinese companies because in the tariff war while the governments of both the countries are generating revenue worth billions of dollars, the US and Chinese companies are suffering losses of employees, exports, revenue and customers. China has not only fought a tariff war but has also caused harm to top US companies, including Apple, Microsoft, Tesla, Amazon, and many other companies. Due to this, in the trade war between Trump and China, India, Japan and many small countries have started getting discounts on Chinese and American imports, but the companies, firms, manufacturers and employees of both the countries are facing bad effects. US president says, US government have generated more than $2.5 trillion Dollar in tariffs amid US-China and Global Trade war. Which clearly means that both countries are targeting each other’s companies so that maximum tariff can be gained from those companies and peoples.

Why China and the US gaining record-high revenue in the Tariff war?

Due to Chinese goods not being imported into the US, a lot of problems have arisen in the US because top US companies believe that they will no longer be able to pay taxes to the US government because even despite the tariff war, the US government is earning a lot of money and inflation has increased even more inside the US. In this tariff war between the US and China only two people are suffering the most, one is the employees and the other are the buyers, because these people have been affected the most by the tariff war due to which some protests also took place in New York. Well, some Chinese sources believe that even though the US is waging a war of words against China, the Chinese government has come up with a lot of alternate options which will not cause any harm to anyone’s employment inside China. China has expanded its manufacturing to every corner of the world so that during the tariff war between China and the US, Chinese exports can be sent globally with the help of Africa, Europe and the Middle East.

How are US companies still importing Chinese Goods amid Trump’s Tariff war?

It has been told recently that the trade war between China and the US depends only on the imports and exports directly to China and the US, but China has developed good relations with Iran, UAE, Qatar, Africa, Japan, South Korea and all its allies due to which Chinese goods are still reaching the US and are also being sold in the US. Although only the US and Chinese customers are suffering losses by breaking China’s supply chain in front of the world and continuously increasing tariffs against China, the Chinese government is still strong enough to force the US to do trade negotiations if it wants. Recently it has been told that China has imposed tariffs and taxes on US companies that operate in China, from which the Chinese government is getting a lot of money, but inside the US, all the companies that trade with China are US, on which it is very difficult to impose both taxes and tariffs simultaneously. Even though the US has recently imposed tariffs, China is now exporting discountable goods to countries like Japan, South Korea, India, Iran, Saudi Arabia and the European Union, which means that just like China, US, Saudi and India benefited from the Ukraine Russia war, in the same way Europe, India and Japan are also benefiting from the US-China trade war. But if Trump stops 100+ countries from getting Chinese imports in the name of Dollar, it may have negative impact on China’s economy and Chinese government. Due to this, China is constantly responding to Trump’s tariffs because China knows that no one can provide such cheap manufacturing to the US without China.